Home sales in the United States dropped 2.4% in June from May to 4.09 million units, according to the National Association of Realtors. High mortgage rates coupled with record-high home prices caused homebuyers to pull back despite housing analysts predicting a slight month-over-month gain. Lawrence Yun, the Realtors' chief economist, attributed the monthly fluctuations to buyer sensitivity to affordability conditions, noting that job gains of more than half a million since the beginning of the year continue to provide housing market support.
June Home Sales Drop 2.4% Amid Affordability Pressures
Sales of previously owned homes in June reached 4.09 million units on a seasonally adjusted, annualized basis, representing a 2.4% decline from May. June sales were 2.8% higher than the same month a year prior. The data represents closed sales, reflecting contracts likely signed in May when the average rate on the 30-year fixed mortgage was still moving higher. Mortgage rates began rising sharply at the start of March at the start of the Iran war.
Inventory at the end of June stood at 1.56 million units, down 0.6% from May but 1.3% higher than June 2025. At the current sales pace, this represents a 4.6-month supply. The market is considered balanced between buyer and seller at a 6-month supply.
Median Home Price Reaches Record $440,600
The median price of an existing home sold in June was $440,600, an increase of 1.8% from the year before and the highest on record. June is usually the strongest month for both sales and prices. Yun stated that progress on long-term housing affordability could be hampered if inventory growth continues to stall, emphasizing that it is critical to introduce more supply to the market to widen the opportunity for homeownership.
Sales Surge 18% in Million-Dollar-Plus Price Range
Sales continue to be strongest on the higher end of the market. Sales of homes priced below $100,000 were down 1.7% from a year ago, and sales of those priced between $100,000 and $250,000 were up less than 1%. Sales of homes priced between $750,000 and $1 million were up nearly 14% from the year before, and sales of homes priced above $1 million were up 18%.
Regionally, home sales were down in June month over month everywhere except in the Northeast. One quarter of all sales were all-cash, down from 29% last year. First-time buyers made up 33% of sales, up from 30% a year ago.
FAQ
What caused US home sales to drop in June?
Home sales dropped 2.4% in June from May due to high mortgage rates coupled with record-high home prices, which caused homebuyers to pull back according to the National Association of Realtors.
What was the median home price in June?
The median price of an existing home sold in June was $440,600, an increase of 1.8% from the year before and the highest on record.
Which price range saw the strongest sales growth in June?
Homes priced above $1 million saw the strongest sales growth at 18% compared to a year ago, while homes priced between $750,000 and $1 million were up nearly 14%.
